On Thursday, Bitcoin (BTC-USD) surged beyond $25,000 for the first time since June 2022, trading as high as $25,104 and bringing year-to-date gains for the world's biggest cryptocurrency to north of 50%. Ethereum (ETH-USD) also rose significantly, up 8.6% to $1.71K. Both tokens still have a lot of ground to cover to reach their respective November 2021 highs, as seen in this chart.
In the past 24 hours, the crypto market capitalization saw an increase of 6.9%, reaching US$1.10 trillion, the highest it has been since mid-August. Furthermore, the total trading volume was up 7.9%, settling at US$63.61 billion.
The surge was attributed to a decrease in risk aversion and a seeming U.S. regulatory crackdown on digital assets. The consumer price index report for January also showed inflation rising 0.5% for an annual increase of 6.4% to start off 2023, which was slightly higher than the forecast 0.4% and 6.2% respectively.
Galaxy Digital Holdings CEO Mike Novogratz said there’s a good chance of Bitcoin returning to $30,000 by the end of next month — a far cry from the $500,000 he once predicted for the digital currency, but still almost 25% above its current price.
“What makes me skeptical that we can have the explosive, back-to-the-old highs this year is Chairman Powell. He’s really doing what he says he’s going to do, and I don’t see the Fed pivoting and cutting anytime soon,” Novogratz said.
The move appears to have been sparked by a short squeeze following softer-than-feared comments from the SEC, and optimism was concentrated in Bitcoin and Ethereum. BNB rose 7.1% to US$317.39, while Bitcoin broke through the US$24,000 price ceiling for the first time in two weeks to reach its highest price since mid-August.
As the market appears to be picking up steam and people are brushing off any bearish news, there are increasing signs that the market bottomed last November and is now in a bullish rally. This move pushes the world’s largest cryptocurrency above a ceiling at $24,200, hitting its strongest point since August 20 in the process.
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